📊 ZUMZ Key Takeaways
Is Zumiez Inc (ZUMZ) a Good Investment?
Zumiez demonstrates solid financial health with a fortress balance sheet (0.01x leverage), positive free cash flow of $42.4M, and recovery-driven profitability improvements. However, thin operating margins (1.8%), anemic returns on equity (4.1%), and modest revenue growth (4.5%) in a challenging retail sector limit upside potential; the company is more suitable for capital preservation than growth investors.
Why Buy Zumiez Inc Stock? ZUMZ Key Strengths
- Fortress balance sheet with minimal debt ($1.9M long-term debt) and strong liquidity (2.01x current ratio)
- Positive and sustainable free cash flow of $42.4M with 4.6% FCF margin supporting operations and capital allocation
- Profitability recovery with net income growing 881% YoY and improving from depressed prior-year levels
ZUMZ Stock Risks: Zumiez Inc Investment Risks
- Structurally thin operating margins (1.8%) and net margins (1.4%) vulnerable to retail sector competition and cost pressures
- Weak capital efficiency with ROE of 4.1% and ROA of 2.1%, indicating inefficient capital deployment
- Slow revenue growth (4.5% YoY) in a mature, competitive retail apparel market with limited expansion prospects
Key Metrics to Watch
- Operating margin trajectory - must demonstrate sustained expansion above 2.5% to signal operational improvement
- Comparable store sales and revenue growth acceleration - need acceleration beyond 4.5% to indicate market share gains
- Return on equity and free cash flow stability - ensure capital generation continues while monitoring for margin compression
Zumiez Inc (ZUMZ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.01x current ratio provides a solid financial cushion.
ZUMZ Profit Margin, ROE & Profitability Analysis
ZUMZ vs Consumer Sector: How Zumiez Inc Compares
How Zumiez Inc compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zumiez Inc Stock Overvalued? ZUMZ Valuation Analysis 2026
Based on fundamental analysis, Zumiez Inc has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zumiez Inc Balance Sheet: ZUMZ Debt, Cash & Liquidity
ZUMZ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zumiez Inc's revenue has declined by 22% over the 5-year period, indicating business contraction. The most recent EPS of $-3.25 indicates the company is currently unprofitable.
ZUMZ Revenue Growth, EPS Growth & YoY Performance
ZUMZ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $222.5M | $1.2M | $0.06 |
| Q2 2025 | $210.2M | -$847.0K | $-0.04 |
| Q1 2025 | $177.4M | -$14.3M | $-0.79 |
| Q3 2024 | $216.3M | $1.2M | $0.06 |
| Q2 2024 | $194.4M | -$847.0K | $-0.04 |
| Q1 2024 | $177.4M | -$16.8M | $-0.86 |
| Q3 2023 | $216.3M | -$2.2M | $-0.12 |
| Q2 2023 | $194.4M | $2.7M | $0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zumiez Inc Dividends, Buybacks & Capital Allocation
ZUMZ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zumiez Inc (CIK: 0001318008)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ZUMZ
What is the AI rating for ZUMZ?
Zumiez Inc (ZUMZ) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ZUMZ's key strengths?
Claude: Fortress balance sheet with minimal debt ($1.9M long-term debt) and strong liquidity (2.01x current ratio). Positive and sustainable free cash flow of $42.4M with 4.6% FCF margin supporting operations and capital allocation.
What are the risks of investing in ZUMZ?
Claude: Structurally thin operating margins (1.8%) and net margins (1.4%) vulnerable to retail sector competition and cost pressures. Weak capital efficiency with ROE of 4.1% and ROA of 2.1%, indicating inefficient capital deployment.
What is ZUMZ's revenue and growth?
Zumiez Inc reported revenue of $929.1M.
Does ZUMZ pay dividends?
Zumiez Inc does not currently pay dividends.
Where can I find ZUMZ SEC filings?
Official SEC filings for Zumiez Inc (CIK: 0001318008) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ZUMZ's EPS?
Zumiez Inc has a diluted EPS of $0.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ZUMZ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Zumiez Inc has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ZUMZ stock overvalued or undervalued?
Valuation metrics for ZUMZ: ROE of 4.1% (sector avg: 18%), net margin of 1.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy ZUMZ stock in 2026?
Our dual AI analysis gives Zumiez Inc a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ZUMZ's free cash flow?
Zumiez Inc's operating cash flow is $53.5M, with capital expenditures of $11.1M. FCF margin is 4.6%.
How does ZUMZ compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.4% (avg: 8%), ROE 4.1% (avg: 18%), current ratio 2.01 (avg: 1.5).